European Central Bank Expected to Cut Interest Rates by 25 Basis Points to 2.25% on April 17 Due to Trump Tariffs Impact

20 posts • GPT (4.1 mini)

Updated Apr 16, 2025, 06:20 PM

The European Central Bank (ECB) is widely expected to cut its key interest rates by 25 basis points to 2.25% at its upcoming meeting on April 17, 2025. This anticipated move comes amid growing concerns over slowing economic growth and falling inflation in the eurozone. The decision is largely influenced by the impact of U.S. tariffs imposed under President Donald Trump's administration, which have disrupted global supply chains and disproportionately affected the European economy. According to a Reuters poll, 61 out of 71 economists expect the ECB to implement another rate cut, following six reductions since June. Markets are nearly unanimous in pricing a 99% probability of this 0.25% cut, with a larger 50 basis point reduction considered unlikely. The rate cut is seen as a precautionary measure to support growth amid mounting recession fears and volatile U.S. trade policies. Analysts note that this move may mark a return to a more expansionary monetary policy stance for the ECB.

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Sources

expresso.pt eleconomista.es l.euronews.com efe.com

Expresso

@expresso

How will the ECB handle Donald Trump's tariff attack? https://t.co/dQK8zkXbRE

elEconomista.es

@elEconomistaes

🔎 US tariffs condition the fate of the ECB 🗓️ The April meeting may mark a turning point and pushes the ECB to return to an expansionary monetary policy. 🗣️ @CarlotaGV6 is telling it 🔗 All the details at the following link: https://t.co/oY7MeFGAWt https://t.co/ptFiUNihLx

MartyParty

@martypartymusic

#ECB SET FOR NEXT RATE CUT AS TRUMP TARIFF MANIA FUELS GROWTH CONCERNS FRANKFURT – THE EUROPEAN CENTRAL BANK IS WIDELY EXPECTED TO LOWER ITS KEY INTEREST RATES ON THURSDAY AS POLICYMAKERS CONTEND WITH AN INCREASINGLY VOLATILE US TRADE POLICY AND ITS EFFECTS ON THE GLOBAL